Nepal | April 10, 2020

Scrap agreement with contractors who fail to meet project deadline: MoEWRI

Himalayan News Service

Kathmandu, February 8

As many projects have failed to complete construction works within the stipulated timeframe, the Ministry of Energy, Water Resources and Irrigation (MoEWRI) has directed its line agencies to scrap the contracts of such projects.

In a discussion programme held on Friday, Minister for Energy, Water Resources and Irrigation Barshaman Pun directed the Department of Electricity Development, Nepal Electricity Authority, Department of Irrigation, Alternative Energy Promotion Centre and the Department of Hydrology and Meteorology to conduct a detailed assessment of problematic contracts.

“If they are too problematic and will not be able to finish the work as per the given deadline then it would be better to revoke their contracts as per the law,” he stated.

He further said that some of the contractors used to take advantage of the political instability and transition in the past. At that time there was a trend among contractors and concerned government officials not to finish their work as per the contract. But now this needs to be eliminated and development works should be completed in a timely manner, he added.

“Now there is no excuse for delaying work in the name of politics or any other cause,”

Pun mentioned, directing the line agencies to cancel the contracts of those construction companies that do not finish their work according to the agreement.

Minister Pun further claimed that the present government has tried to eliminate such trends and the pace of development has accelerated in recent times.

“There has been a significant drop in number of problematic contracts during the two years since I have led the ministry,” he said. “However, there are some contractors who have not been performing as expected and need to be penalised. We will submit their names to the Public Procurement Monitoring Office to blacklist them.”

To reduce the number of such types of problematic contracts, National Planning Commission has arranged a direct monitoring mechanism to send the monthly progress report to all the ministries through their line agencies.

“After the establishment of this monitoring mechanism, our departments and line agencies are working hard to meet the deadline,” said Pun.


A version of this article appears in print on February 09, 2020 of The Himalayan Times.


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